Question

Our choices today affect future resources. For example, high demand for fast fashion, overfishing and overuse of groundwater can harm future supply. So, should we focus only on short-term gains, or also think about long-term sustainability? How could this affect the market equilibrium?

Answer 1

We should not focus only on short-term gains. We should also think about long-term sustainability so that resources remain available for future generations. If resources such as fish, groundwater and raw materials are overused, their supply may decrease in the future.

This can affect market equilibrium because a fall in supply, with demand remaining high, can lead to higher prices and lower quantities available in the market. For example, overfishing can reduce the supply of fish, causing fish prices to rise. Similarly, excessive use of groundwater can make water scarcer and more expensive.